North Carolina Down Payment Support Systems

Payments Gateway - The North Carolina Housing Finance Agency got two excellent programs for first-time Home Buyers. These programs will be the Mortgage Credit Certificate as well as the deposit Assistance Program.

You purchase a house between January 1, 2009 and December 1, 2009 and should you qualify for one of the plans, you may also qualify for the $8,000 tax credit only enacted into law.

First, who's a first-time Home Buyer? There is a First Time Home Buyer someone who hasn't owned a house in the past three years. Here is the same qualifying definition for the $8,000 tax credit.

What's a Mortgage Credit Certificate and Who Qualifies?

A Mortgage Credit Certificate (MCC) is a federal tax credit to assist home buyers with moderate and low incomes.

In case you qualify for the MCC, you are able to claim 20% of the interest you pay as a credit on your own federal income taxes on your own mortgage. It is possible to save up to $2,000 on your taxes.

Should you qualify for 2009, for the MCC, you'll manage to join this. This might reduce the tax liability of a buyer's by $10,000.

Who Qualifies for an MCC?

Household income is defined as the “gross income of the mortgagor and any man expected to live in the home who's 18 years of age or older.”

The income and house price limitations that apply in Orange, Durham and Chatham Counties are given below.

MCC Income Limits 1 Man $61,500 2 Persons $61,500 3 Individuals $70,500 4 Individuals $70,500

MCC Sales Price Limits New Home $220,000 Existing Home $210,000

Who Qualifies for Down Payment Help?

Home buyers that want help with their deposit and closing prices may be able to get down payment assistance - or, to put it differently, interest-free, deferred second mortgages up to $8,000. The customer just has to pay and the load would pay as much as $8,000 of the remaining balance.

This program has more rigorous income limitations than the MCC plan summarized above. Like the MCC program, it can be utilized together with the new $8,000 tax credit on house purchases between December 1, 2009 and January 1, 2009. The deposit help, nevertheless, can't be used in conjunction with the MCC. This really is an either or scenario.

House price limits that apply in Orange, Durham and Chatham Counties and the income are given below.

Down Payment Assistance Income Limits

1 Person $39,950 2 Persons $45,650 3 Individuals $51,350 4 Men $57,050

Down Payment Support Sales Price Limits New Dwelling $210,000 Existing Home $210,000